So what: The second quarter wasn't terrible, with revenue growing 21% to $77.5 million and net income coming in at $22.8 million. On an adjusted basis the company made $0.40 per share, which was $0.04 ahead of estimates.

The challenge is that revenue fell short of the $78.9 million estimate and guidance was well short of expectations. The company expects revenue of $84.7 million to $87.2 million in the current quarter and earnings of $0.35 to $0.36 per share. Analysts expected $90.5 million in revenue and $0.39 in earnings.

Now what: The company's licensing revenue growth is slowing, and with shares trading at 31 times trailing earnings, the market has priced in a lot of growth. Slowing growth in its licensing business doesn't support that kind of multiple and analysts rushed to downgrade the stock or lower price targets as a result today. The company isn't in bad shape, but the stock may have gotten ahead of itself, and with its earnings multiple remaining high, I'll avoid the discount today.

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